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Each year there is a ceiling for the amount that is subject to all of the following except |
Federal Income Tax |
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The journal entry a company uses to record the issuance of a note for the purpose of converting an existing account payable would be |
debit Accounts Payable; credit Notes Payable |
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The total earnings of an employee for a payroll period is referred to as |
gross pay |
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A pension plan which requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed |
defined contribution |
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Notes may be issued |
1. when assets are purchased 2. to cerditors to temporarily satisfy an account payable created earlier 3.when borrowing money |
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The required form that is filed with the Internal Revenue Service showing the amount due for income taxes withheld and FICA taxes is the |
?(not W2) |
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Most employers are levied a tax on payrolls for |
federal unemployment compensation tax |
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An aid in internal control over payrolls that indicates employee attendance is |
clock card |
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Which of the following would be used to compute the federal income taxes to be withheld from an employee’s earnings? FICA tax rate wage and tax statement FUTA tax rate wage bracket and withholding table |
wage bracket and withholding table |
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The employee earnings record would contain which column that the payroll register would probably not contain? |
cumulative earnings |
|
Vacation pay payable is reported on the balance sheet as |
current liability or long-term liability, depending upon when the vacations will be taken by employees |
|
The journal entry a company uses to record pension rights that have not been funded for its salaried employees, at the end of the year is |
debit Pension Expense; credit Unfunded Pension Liability |
|
The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is |
debit Pension Expense; credit Cash |
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Which of the following are included in the employer’s payroll taxes? |
SUTA taxes FUTA taxes FICA taxes |
|
he journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is |
debit Vacation Pay Expense; credit Vacation Pay Payable |
|
Quick assets include |
cash; cash equivalents, and receivables |
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As interest is recorded on an interest-bearing note, the Interest Expense account is |
increased; the Interest Payable account is increased. |
|
Most employers are required to withhold from employees for |
only federal income tax |
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The interest deducted from the maturity value of a note is called |
discount |
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The amount of federal income taxes withheld from an employee’s gross pay is recorded as a(n) |
liability |
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The maturity value of an interest-bearing note payable is the |
face value plus the interest |
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The journal entry a company uses to record partially funded pension rights for its salaried employees, at the end of the year is |
debit Pension Expense; credit Unfunded Pension Liability and Cash |
|
A pension plan which promises employees a fixed annual pension benefit, based on years of service and compensation, is called a(n) |
defined benefit plan |
|
Payroll taxes levied against employees become liabilities |
??? ( nt when earned by the employee ) |
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The journal entry a company uses to record the estimated accrued product warranty liability is |
debit Product Warranty Expense; credit Product Warranty Payable |
|
Which of the following is the most desirable quick ratio? |
the higher the better, below 1 means the company does not have enough money to cover current liabilities |
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Estimating and recording product warranty expense in the period of the sale best follows which of the following accounting concepts? |
matching concept |
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Payroll entries are made with data from the |
payroll register |
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The detailed record indicating the data for each employee for each payroll period and the cumulative total earnings for each employee is called the payroll register payroll check employee’s earnings record employer’s earnings record |
? not payroll register |
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The current portion of long-term debt should |
be reclassified as a current liability. |
|
The cost of a product warranty should be included as an expense in the |
period of the sale of the product |
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The journal entry a company uses to record the issuance of a note for the purpose of borrowing funds for the business is |
debit Cash; credit Notes Payable |
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Which statement below is not a determinate in calculating the amount of federal income taxes withheld from an individuals pay? filing status types of earnings gross pay number of exemptions |
types of earnings |
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The journal entry a company uses to record the payment of an ordinary note is |
debit Notes Payable and Interest Expense; credit Cash |
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An unfunded pension liability is reported on the balance sheet as |
current liability or long-term liability, depending upon when the pension liability is to be paid |
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Which of the following is not an internal control procedure for payroll? |
payroll depends on a fired employee’s supervisor to notify them when an employee has been fired |
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The journal entry a company uses to record the issuance of a discounted note for the purpose of borrowing funds for the business is |
debit Cash and Interest Expense; credit Notes Payable |
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Which of the following will have no effect on an employee’s take-home pay? |
Unemployment tax |
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